Job Costing Methods

To properly estimate a job or bid, the following five costs must be determined and included in the job estimate: 2.1.1 Materials costs include all heating, cooling, refrigeration units and all parts and supplies used on the job. 2.1.2 Labor costs that are improperly assessed are a main reason companies fail. When tyou estimate a job, you should always recheck whether past job estimates were updated or corrected with the time actually needed / worked for job completion. 2.1.3 Other Direct Job Costs include contract labor, machine or equipment rents, gas and oil, or any other cost that can be directly related to a particular job. Any sales cost must be considered if they can be attached to the actual job. 2.1.4 Overhead are all general and administrative cost which include officer salaries, facilities rent, insurance, administrative salaries, utilities, copy machines, etc. 2.1.5 Completed Bid Net Profit is the amount of profit desired to be realized at the end of the project. It can be expressed as dollar amount or percentage of the amount paid to you upon completion.